Hogg v. Lynch, Chappell & Alsup, P.C.

553 S.W.3d 55
CourtCourt of Appeals of Texas
DecidedMay 4, 2018
DocketNo. 08-16-00305-CV
StatusPublished
Cited by12 cases

This text of 553 S.W.3d 55 (Hogg v. Lynch, Chappell & Alsup, P.C.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hogg v. Lynch, Chappell & Alsup, P.C., 553 S.W.3d 55 (Tex. Ct. App. 2018).

Opinion

YVONNE T. RODRIGUEZ, Justice

In this attorney-versus-client fee dispute, Dhara Gayle Hogg challenges a summary judgment rendered in favor of her ex-lawyers on their claim against her for breach of contract. Hogg, who attempted to resist contract payment on unconscionability grounds, asks us to reverse the summary judgment, contending that the trial court erroneously prevented her from presenting evidence of her conversations with her attorneys as a sanction for failing to turn over digital recordings of those same conversations during discovery. Hogg insists these recordings do not, in fact, exist; the trial court found otherwise. Hogg also maintains that the trial court incorrectly excluded certain other evidence from its consideration, and that an expert affidavit she submitted creates a fact issue on whether her lawyers' fees were unconscionable ab initio.

We will affirm the summary judgment.

BACKGROUND

The Contingency Agreement and the Probate Fight That Wasn't

Although the parties disagree on the law, the facts in this case for purposes of this appeal-save for one critical issue-are essentially undisputed. In April 2013, Dhara Hogg's husband George Hogg died.1 Because it was unclear whether her husband left a will disposing of his $10 million estate, Hogg hired the law firm of Lynch, Chappell & Alsup, P.C. (LCA) to handle legal matters related to her interest in the estate. Initially, Hogg and LCA agreed that LCA Attorney Austin Ramsey would represent her on an hourly basis. But when her late husband's brother, Mark Hogg, moved to be appointed independent administrator of the estate a week later, Dhara Hogg met again with LCA, explaining that she wanted to oppose Mark's appointment and that she expected a lengthy legal fight with her brother-in-law over the estate. In connection with the impending estate litigation, Mark offered Hogg an annuity and a house if she agreed to waive her interest in the estate. LCA attorney Harper Estes advised her that she, as an intestate heir, was likely entitled to more than what Mark offered.

According to LCA, Hogg asked LCA if they would represent her on a "percentage basis" instead of an hourly basis since she had little accessible money. Hogg maintains that it was LCA that first suggested *62the contingency arrangement. In any event, LCA avers that it advised Hogg to seek independent counsel before deciding whether to switch from an hourly rate to a contingency rate. Neither party disputes that Hogg forewent independent counsel and entered into a contingency agreement for legal services (the Contingency Agreement) on April 29, 2013. The Contingency Agreement provided that although the value of the estate was unknown, "it is thought that the estate may be comprised of an undivided interest in real property, both surface and mineral" and that LCA would receive 25 percent of any recovery Hogg received from her late husband's estate, to include any real estate interests. The Contingency Agreement also contains recitals stating that Hogg acknowledged that she was advised to seek independent counsel, and that she forewent counsel and agreed to the switch from an hourly rate to a contingency rate.

LCA's Attorneys Estes, Ramsey, and Scott Ryburn collectively worked 896 hours on Hogg's case. According to an affidavit filed by Estes, the entire estate consisted of property that "was either jointly owned as co-tenant or commingled with property of Mark Hogg." Ultimately, Dhara Hogg and Mark Hogg entered into mediation, which eventually resulted in a mediated settlement agreement (the Rule 11 Agreement) signed and entered into on December 2, 2013-approximately seven months after the Contingency Agreement was signed. The Rule 11 Agreement ended the dispute over George Hogg's estate. As part of the Rule 11 Agreement, Dhara Hogg received cash, personal property, and real property, as well as an undivided ½ interest in the sizable mineral holdings.2

The day after signing the Rule 11 Agreement, Hogg praised her attorneys' work in an email.3 However, just over one month later, as the closing date for the real estate transfers governed by the Rule 11 Agreement approached, Dhara Hogg's opinion of her LCA attorneys changed. Hogg refused to pay LCA under the terms of the Contingency Agreement or to close on a real estate contract awarding LCA a portion of the oil and gas interest she inherited from her late husband. LCA then sued Hogg for breach of contract; Hogg (1) countersued for breach of fiduciary duty and fraud, (2) argued the Contingency Agreement was unconscionable, and (3) sought the remedies of constructive trust and fee forfeiture.

Fee Litigation and the Discovery Dispute

During the course of the fee dispute litigation, LCA Attorney Scott Ryburn received an unusual email from Hogg with the subject line "No no." The email read:

Hey do not mention that i recorded every meeting with those attys in midland. Idk if its legal. And u def don't want them knowing I recorded mediation! My new attys will deal with it please don't even tell ur dad! No one needs to know! Love u don't worry! Focus on u sweet baby girl. Say ur prayers. It wil all come out in the end. I only appear to be *63stupid son! I love yall! George is watching over us! Hugs!
Thank you,
~ DGHogg~

Attorney Ryburn and Hogg's son share the same first name: he is Scott Ryburn, and Hogg's son is named Scott Whitley. After reviewing the email, LCA inferred that Hogg had accidentally sent Scott Ryburn an email intended for her son Scott Whitley. LCA served a request for production of all recordings Hogg made of the mediation and any interaction she had with LCA attorneys. Hogg answered that she, in fact, did not have any recordings. LCA moved to compel discovery, and in an affidavit and testimony at a hearing, Hogg stated that she had never made any recordings and that the email she sent to Ryburn had all been a ruse on her part. She explained her purported motives in an affidavit:

I sent an e-mail to attorney Scott Ryburn pretending it was intended for my son Scott Whitley. It said all the conversations with my lawyers had been recorded.
My reason for the e-mail was because they were lying to me or about me and I was upset and felt cheated so I thought if they believed we/I had recorded the meetings or the mediation that they would stop lying. I also wanted to see how they would react: Would they act paranoid about the possibility that others would hear this alleged recording and know that they did me wrong?
Neither I nor anyone I know made any audio, video or electronic recordings of any meetings of conversations with any attorney at Lynch, Chappell & Alsup, P.C. They do not exist and have never existed. I never made them.

She reiterated this affidavit testimony during oral testimony at a motion to compel hearing. The trial court, Judge Bob Parks presiding, disbelieved her testimony, found that the recordings existed, and granted an order compelling Hogg to turn over the recordings to LCA by June 5, 2014.

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553 S.W.3d 55, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hogg-v-lynch-chappell-alsup-pc-texapp-2018.